It is unlikely to start reading the high “basic” inflation in its path to reduce prices in September

A new reading on the inflation scale appeared in the Federal Reserve again, but the central bank is unlikely to raise the path to cut prices in September.

“The PCE price index will maintain the line today to focus on the job market. At the present time, the possibilities still prefer to reduce September,” said Ellen Zintner, the chief economist of Murghan Stanley Wealth Management. “But the size of this opening will depend on whether the labor market is weak, it still seems to be a greater risk of high inflation.”

The Personal Consumption Expenditure Index increased on a “basic” basis, which excludes flying food and energy prices, by 2.9 % over the previous year, up from 2.8 % in the previous and higher month since February. On a monthly basis, basic prices increased by 0.3 % for the second month in a row.

On the basis of the title, prices increased by 2.6 % in July compared to last year, which corresponds to the increase in June. Monthly, prices increased by 0.2 % from June to July, a decrease from 0.3 % in the previous month.

(The S&P 500 stock index has been traded around 0.70 % since the morning release of inflation data.)

At the same time, the report showed that spending on consumers was taken last month.

While federal reserve officials are strongly monitoring the amount of definitions that raise inflation, the high prices of “basic” in July were due to the high prices of services. “This is another evidence that the tariff has little impact on the prices of goods,” said Harry Chambers, assistant economy economy in the capitalist economy.

Read more: How are jobs and inflation and Fed

Chambers noted that the collapse showed that the prices of basic goods did not change a month. Instead, the rise was only driven by an increase of 0.36 % per month in basic services prices, which was expected to consider the consumer price index strength for services.

While inflation does not move in the direction that the Federal Reserve wants to see, the President of the Federal Reserve, Jerome Powell, said in a speech in Jackson Hall, and Yu, last week that a reasonable essential issue is that inflation from definitions will likely lead to an increase in prices for once-and it seems that the balance of risk is turning.

Powell pointed out that there is anxiety about the direction of the labor market strength, given the decrease in the salary report for the month of July and the large reviews of job growth in the previous months. He also pointed out that there is a remarkable slowdown in both supply and demand for workers, indicating that negative risks to work are increasing.

“If these risks are fulfilled, they can do so quickly in the form of a sharply higher discharge and high unemployment,” said Powell.

It may be good for the next job report to be, scheduled for September 5, for the month of August is the decisive factor to reduce rates at the September Policy meeting.